DOF backs P-Noy decision not to raise taxes

MANILA, Philippines - The Department of Finance (DoF) is supporting President Aquino’s decision not to introduce new taxes next year and instead focus on improving revenue collections.

Finance Secretary Cesar Purisima said President Aquino’s commitment to the people is now focused more on efficient revenue collection than getting more state income through new tax measures.

“We have to set aside for now the plan to raise taxes, let’s support the President (on his no new taxes policy),” Purisima told reporters.

The President reiterated last month that he is sticking to a pledge that his administration would not impose new taxes amid substantial revenue, citing the government’s focus is to improve tax collection efficiency.

Internal Revenue Commissioner Kim Jacinto-Henares earlier said the country’s main tax agency is confident that it could meet its P1.006 trillion target for next year without new tax measures.

Henares explained that the agency’s goal for next year is set under an assumption that Congress would not pass any new tax measure.

“The P1.006 trillion target is purely reliant on our efficiency in collection taxes and economic growth,” she said.

The Philippine Tobacco Growers Association Inc. (PTGA), meanwhile, lauded the President for keeping his campaign promise not to impose new taxes or increase existing tax rates.

Rating firm Standard & Poor’s earlier said the Philippines needs to increase its tax rates to get an investment-grade sovereign rating while a finance official said the state will consider increasing excise taxes on tobacco and alcohol products.